Why is high Value Home Insurance better than normal home insurance?

I have been asked to write this blog as this is a question we are often asked. I think it is fair to clarify a few points before going any further. To say that High Value Home Insurance is ‘better’ is not really the correct adjective in this instance. I would suggest that saying high value home insurance is ‘more appropriate’ or perhaps, ‘more suitable’ is a clearer way to present the question.

I say that because the bottom line is that neither one nor the other are ‘ better’ all the time. If you are trying to insure a two-bed semi in the suburbs or perhaps outside the capital then normal or standard home insurance may well be ideal for your needs. To be honest the vast majority of the population would be more than well served by a normal or standard home insurance policy. So maybe it is fairer to say that in the vast majority of cases a normal home insurance policy is in fact better than a more specialised high value home insurance policy.

However here at McLeod Insurance we specialise in High Value Home Insurance and for our clients at least the normal or standard home insurance policy is not appropriate and in many instances the standard policy is definitely not better! As I have often said you need the right tool for the job in hand and when you are looking to insure a high value home, and by that I am referring to homes worth more than £800,000 you need to equip yourself with a insurance policy which fits your requirements.

Standard policies will not cover you to the level required and often have small print nullifying the policy if certain criteria are not met. For example if you have neglected to itemised all of your personal effects you could be considered to be under insured and in some extreme cases this can leave you very exposed. In some cases being underinsured does not just mean that you only get paid out on the sum insured you stated but can actually give the insurer that cash to void any claim! Here at McLeod we make sure that none of our policies will leave you exposed in this manor. High Value Home Insurance policies are more bespoke and because they are tailored of those with a little more to insure they come with a higher degree of focus on the finer detail.

Contrary to what you may expect high value home insurance premiums are not necessarily more expense than the standard policy. This is because standard policies make a lot of assumptions and add a lot of standard detail. Our policies will be full of detail but detail very specific to individual homes and indeed people. This may mean that the jewellery aspect of the policies is considerably larger for one client than it is for another. However the same client may well have very little art or perhaps their art is kept overseas. Everyone is different and every client of ours has different unique circumstances and ultimately will require a unique policy.

So in conclusion the reason you may well be told that high value home insurance is better (for you) than a standard insurance policy is your unique circumstances. A bespoke insurance policy is more suitable for a client with more to insure and as you do have more to insure it is even more important to make sure you are well covered in the event of a claim. We are here to walk you through every aspect of the policy and will give you as much or a little detail as you want to know. The important thing is that we have twenty years experience in the high value home insurance sector and understand the complexities. You will be safe in our hands. Its what we do!

Richard McLeod
Director at McLeod Risk Services LLP

Top tip

Using an independent bespoke insurance broker such as McLeod Insurance, can reduce the cost of your policy, whilst also achieving the broadest cover in the market.

Direct policies are NOT necessarily the best value.